Kalyta explains that the industry still has a lot of knowledge gaps around veterans. Former servicemembers are entitled to a significant array of benefits through Veterans Affairs Canada, but those benefits come with a highly complex array of tax considerations. He notes the example of the income replacement benefit, which can be clawed back based on a very specific array of income sources that are often different from a typical insurance disability benefit.
There will also be a transition period for those veterans released from the military on medical grounds. Their benefits will come through Manulife for two years before being switched over to Veterans Affairs. Each organization offers slightly different benefits and forms of administration that veterans will have to navigate. Veterans Affairs will also offer a range of other benefits, including pain and suffering compensation, there are certain benefits that can only be applied for while an individual is still in uniform and others that have to come when someone leaves the service. Benefits may come from Veterans Affairs or the Canadian Armed Forces and navigating even just those two sources can be a challenge.
In working with veteran clients, Kalyta will encourage them to ask certain questions and make key requests of their case managers. His role is as much advocate and educator as it is financial planner. He does that work because, fundamentally, he wants to help a community that he believes has given great value to Canada and that he believes has not been served as well as they could be by the industry.
“I thought I’d have a 20 or 30 year career in the military and I would serve. And that’s very important to me. It’s very important to my family. And I couldn’t. So this was still in some respects my way of giving back,” Kalyta says. “Although we have AUM requirements for clients, we don’t for military members and first responders.”
At the same time, Kalyta acknowledges that he is running a business and must bring in revenue for his work. While military members may not be perceived as the highest income or wealthiest cohort in the country, he notes that from a pure AUM perspective there is an opportunity set. Between the various pension assets, benefits, and savings that most veterans are entitled to, they tend to meet at least the threshold for a mass affluent client. Certain entitlements like pain and suffering compensation can be as high as $450,000 tax-free. Not only does Kalyta believe the industry can better serve investors because it’s the right thing to do, he thinks there is real business opportunity in providing value to this client set.
